The $400 Million NeXT Deal That Brought Jobs Back
Apple's board, seeking a modern operating system, eyed NeXTSTEP. The $400 million acquisition of NeXT Computer in February 1997 brought Steve Jobs back to Cupertino, initially as an informal advisor.
Jobs Takes Control: Strategic Shake-up and Product Cuts
Within months, Jobs consolidated power, replacing CEO Gil Amelio and becoming interim CEO. He implemented a drastic overhaul, initiating a strategic alliance with Microsoft. This included a $150 million investment and a commitment to continue developing Office for Mac. Simultaneously, Jobs drastically cut Apple's sprawling product line from dozens to just four core models.
Reviving the Brand and Launching Iconic Products
The company streamlined operations with the launch of its online store and build-to-order model on November 10, 1997. The iconic "Think Different" advertising campaign, launched September 28, 1997, began restoring public faith. This was followed by the revolutionary iMac in May 1998, its distinctive design and ease of use marking a significant departure from previous offerings.
The iMac's Triumph Fuels Return to Profitability
The iMac's success, selling 800,000 units in its first five months, propelled Apple to a profit of $309 million in 1998. This starkly contrasted with over $1 billion in losses the previous year and marked the beginning of Apple's ascent from near-collapse to becoming one of the world's most valuable companies.